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The Czech National Bank (Czech: Česká Národní Banka, ČNB) is the central bank and financial market supervisor in the Czech Republic with its headquarters in Prague. The Bank's governor is Zdeněk Tůma.
[edit] Mission
Primary objective of ČNB as stated in the Act on ČNB is price stability. Secondary objective is to support a sustainable economic growth. Currently in employs inflation targeting monetary transmission mechanism. The goal is to stabilize inflation around 3.0% per annum.
[edit] Board members
[edit] Monetary policy instruments
- Discount rate: 2.75%
- 2-weeks repo rate: 3.75%
- Lombard rate: 4.75%
The last change in monetary policy was on 7 February 2008 when the Bank raised its benchmark interest rates by 25bp.
Banks can deposit excess liquidity overnight with ČNB at the discount rate and can borrow overnight funds at the lombard rate. Thus these two rates create a corridor for the short-term money market rates. Moreover ČNB conducts open market operations in the form of repurchase agreements (REPOs). The basic duration is 2 weeks. Currently ČNB is absorbing excess liquidity. The aim of these operations is to influence the short-term rates which subsequently affects the economic activity, flow of capital and inflation.
[edit] See also
[edit] External links
Coordinates: 50°05′13″N 14°25′42″E / 50.08694°N 14.42833°E / 50.08694; 14.42833
Czech Republic
